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Oscar Health (NYSE:OSCR) surged nearly 11% in premarket trading on Wednesday after the company reported first-quarter earnings far above Wall Street expectations, driven by strong profitability gains and improving operating margins.
The health insurance provider posted adjusted earnings per share of $2.07, beating analyst forecasts of $1.06 by more than $1 per share.
Revenue totaled $4.65 billion during the quarter, below consensus estimates of $4.91 billion but still representing year-over-year growth of 53% from $3.05 billion.
Oscar Health reaffirmed its fiscal 2026 guidance across all key financial metrics.
Net income attributable to the company rose sharply to $679.0 million, or $2.07 per diluted share, compared with $275.3 million, or $0.92 per diluted share, in the first quarter of 2025.
“Oscar Health drove solid first-quarter performance with significant YoY improvements across our core metrics,” said Mark Bertolini, chief executive officer of Oscar Health.
“We are reaffirming our guidance and remain on track to significantly expand margins and achieve meaningful profitability in 2026.”
The company’s medical loss ratio improved to 70.5% from 75.4% a year earlier.
Oscar said the improvement was supported by disciplined pricing actions and favorable reserve development from prior periods totaling $68 million.
The SG&A expense ratio also declined to 15.2% from 15.8%, reflecting stronger operating leverage across the business.
Earnings from operations increased to $704.1 million during the quarter, compared with $297.1 million in the prior-year period.
Adjusted EBITDA climbed to $727.1 million from $328.8 million a year earlier.
Membership in Oscar’s Individual and Small Group plans expanded to 3.17 million members as of March 31, 2026.
That compares with 2.02 million members during the same period last year, highlighting continued growth in the company’s insurance platform.